After months of speculation, developer Prologis on Wednesday provided the first details of the BMW parts warehouse it’s building in Lancaster.

The industrial project is under construction on Danieldale Road just south of Interstate 20.

San Francisco-based Prologis said the building will initially contain 282,000 square feet, with plans to enlarge the project to 370,000 square feet.

The regional parts center is scheduled to open later this year.

It’s next door to the 1.2 million-square-foot warehouse Prologis is building for Quaker Sales & Distribution Inc.

The center will employ more than 65 people.

The automaker will move an operation from Senatobia, Miss.

“This will also be a much larger facility with a location that is more centrally located to serve the growing network of dealers in the South and Southwest area, including the growing Texas metro areas,” BMW said in a written statement to its dealers and managers.

The city of Lancaster is scheduled to approve financial incentives for the project on Feb. 25, Ed Brady, who heads the Lancaster Department of Economic Development, said Wednesday.

The southern Dallas County building is one of two big warehouse deals Prologis announced Wednesday with BMW. The other is in Redlands, Calif. Prologis’ relationship with BMW goes back many years.

With the start of the BMW building, Prologis has more than 2.1 million square feet of industrial construction under way in the Lancaster business park. It’s the largest concentration of warehouse building in North Texas.

“Yes, we are moving a lot of dirt down there,” said Jeremy Giles, president of Prologis’ Dallas-based central region. “We certainly feel like the Dallas market is performing very well.”

Prologis is also developing a speculative 650,000-square-foot warehouse in the business park.

Giles said the developer has land to expand all the buildings now under construction, plus room for two smaller separate industrial buildings.

Prologis held onto the vacant property through the recession to be positioned to attract new industrial building deals as the economy has turned.

“From there, you not only have great access to Interstate 20, but the ability to hit I-35 and I-45,” Giles said.

“Most of those customers view Prologis Park 20/35 to distribute not just to Dallas but with easy access to Houston, Austin and San Antonio — picking up the bulk of the population in Texas.”

The I-20 corridor has landed the lion’s share of recent industrial deals in North Texas.

Along with the Prologis projects, Ace Hardware and L’Oreal Group are planning large warehouses in the area.

Also Wednesday, retailer Conn Appliances Inc. announced it was leasing more than 300,000 square feet of space in a nearby building for a regional distribution center.

Giles said he’s bullish on the Dallas-area industrial development market.

“There are great trends in the Dallas market,” he said. “Not only do we see the pipeline continuing to stay full on bulk deals, but beginning last year we saw the return of smaller users — a different segment of the market.”